These formations signal a price move, but the direction is unknown. In the process of the pattern confirmation, traders realize the pattern’s potential and tackle the situation with the respective trade.
For example, let’s suppose the gbpusd pair is trending in the bullish direction. Suddenly, a neutral chart pattern appears on the chart. What would you do in this case? You should wait to see in which direction the pattern will break. This will give you a hint about the potential of the pattern.
The most popular neutral chart patterns are Triangle patterns:
Ascending Triangle
Descending Triangle
Symmetrical Triangle
Symmetrical Expanding Triangle
For example, let’s suppose the gbpusd pair is trending in the bullish direction. Suddenly, a neutral chart pattern appears on the chart. What would you do in this case? You should wait to see in which direction the pattern will break. This will give you a hint about the potential of the pattern.
The most popular neutral chart patterns are Triangle patterns:
Ascending Triangle
Descending Triangle
Symmetrical Triangle
Symmetrical Expanding Triangle